Saucony and Merrell See Double-Digit Growth in Q1 as Turnaround Takes Hold at Wolverine Worldwide
Stephen Garner
Senior Editor
Shares for Wolverine Worldwide are up nearly 7 percent in Thursday morning trading after the company’s Saucony and Merrell brands both posted double-digit growth in the first quarter.
The Rockford, Mich.-based footwear company said total revenue in the first quarter of 2025 was $412.3 million, up 4.4 percent from $394.9 million the same time last year. Ongoing total revenue in Q1 – which excludes the results of the Sperry business, which was sold in January 2024 – was also $412.3 million, an increase of 5.5 percent from $390.8 million the prior year period.
By brand, Merrell and Saucony led the way in Q1 in terms of growth. At Merrell, net sales in the period were $150.6 million, a 13.2 percent increase from $133.0 million the prior year. At Saucony, net sales were $129.8 million, a 29.6 percent increase from $100.1 million just a year ago.
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Turning to the company’s namesake Wolverine brand, net sales declined 9.2 percent to $37.4 million in the first quarter from $41.2 million the same time last year. And at Sweaty Betty, net sales decline 15.9 percent in Q1 to $38.0 million from $45.2 million.
The company’s international revenue was up 16.4 percent to $207.8 million compared to the prior year, while its direct-to-consumer revenue was down 9.4 percent on a reported basis to $96.4 million. Net debt at the end of the quarter was $604 million, down $83 million, or approximately 12.1 percent, compared to the prior year.
“Our results in the first quarter are further proof of the effectiveness of our strategy and the team’s execution,” Chris Hufnagel, president and chief executive officer of Wolverine Worldwide, said in a statement. “Merrell and Saucony fueled our growth with double-digit revenue increases, and we more than tripled our earnings year-over-year, again delivering a record gross margin performance. We’ve worked to reinvent Wolverine Worldwide for the future – focusing squarely on awesome product, amazing stories, and driving the business.”
Looking ahead, the company said it expects to see “continued momentum” as it moves into the second quarter. Revenue in Q2 is expected to be approximately $440 million to $450 million, representing growth of approximately 3.7 percent to 6.0 percent compared to the second quarter of 2024 ongoing business and constant currency growth of approximately 3.4 percent to 5.7 percent.
Diluted earnings per share in Q2 are expected to be in the range of 17 cents to 22 cents and adjusted diluted earnings per share in the range of 19 cents to 24 cents.
The company further noted that due to uncertainty around tariffs and related macro-economic conditions, it is not providing a full-year 2025 outlook at this time and is withdrawing its 2025 guidance issued on Feb. 19.
“While there’s uncertainty in the marketplace today, I’m excited by the momentum we’ve generated, and I believe we’re well positioned with great global brands, a variety of strategic and operational advantages, and most importantly, a talented and resilient team to navigate the near-term challenges and emerge an even better company,” Hufnagel added.
